New Mexico agency, department on aging make a deal

SANTA FE - Facing an approaching deadline, a New Mexico state agency has backed off its plan to sever a $20 million annual contract with a regional management entity that oversees services to more than 70,000 seniors and their guardians.

In a joint statement, the Aging and Long-Term Services Department and the Non-Metro Area Agency on Aging said they had struck a deal that avoids the contract cancellation in exchange for the regional entity dropping legal action against the state.

The agreement also calls for state monitoring of the entity's job performance and a series of town hall meetings to be held in the next two months.

"It will continue to be our priority to support those who care for our seniors," said acting Aging and Long-Term Services Secretary Kyky Knowles. "We have to make sure that providers are receiving the support they need and ensure that taxpayer dollars are appropriately spent."

The state department on aging announced last month that it was ending its contract — effective Feb. 1 — with the Non-Metro Area Agency on Aging.

In explaining the decision, Knowles claimed the management entity had overbilled the state by more than $450,000 by overcharging for administrative expenses and submitting inflated reimbursement requests.

She referred the possible financial wrongdoing to State Auditor Wayne Johnson, a Republican, who recently announced that his office would launch a special audit of the management entity's finances.

However, some Democratic lawmakers criticized the contract decision and expressed concern about disruptions in a system that provides transportation, home-delivered meals and job-finding assistance for thousands of seniors.

The Non-Metro Area Agency on Aging is one of four management entities in the state. It works with providers in most of New Mexico.